Idea-Vodafone merger Current Affairs
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Kumar Mangalam Birla-led telecommunications major Idea Cellular has agreed to merge with the Vodafone India, Indian unit of the UK headquartered Vodafone Plc.
The blockbuster merger will create world’s second largest (after China Mobile) and India’s largest telecom company by overtaking Bharti Airtel Ltd.
- The merged entity will have almost 400 million customers with 35% customer and 41% revenue market share. It will have revenue of Rs. 81,600 crore and an operating profit of Rs.24,400 crore.
- Together, Vodafone India and Idea Cellular have debt of Rs. 1.08 trillion. The merger is expected to be completed in 2018.
- The brand strategy for the new firm will be developed in due course. Kumar Mangalam Birla will be the chairperson of the merged entity.
- Vodafone will own 45.1% in the combined entity, while Kumar Mangalam Birla and other promoters of Idea Group will own 26% and the rest will be owned by the public.
- The merged entity would hold 1850 MHz, including circa 1645 MHz of liberalised spectrum acquired through 7 auctions.
- It will be capable of building substantial mobile data capacity, utilising the largest broadband spectrum portfolio with 34 3G carriers and 129 4G carriers across the country.
- The merger will be completed by 2018, subject to approvals from shareholders, creditors, stock exchanges, SEBI, telecom department and Competition Commission of India (CCI).